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World Tourism Day: Study finds demand for travel loans increased 10-fold in past year

By on September 27, 2022 0

Travel loan demand has increased 10x over the past year and 36% of travel loan requests were from millennials (aged 21-26), while 52% were from millennials (27-26). 40 years).

IndiaLends, an online marketplace for loans and credit cards, which today released its study on travel loans on the occasion of World Tourism Day, said that the average loan size of trip had gone from 95,000 to 75,000 indicating the loan seekers’ planned approach to their travel expenses.

The study looked at both salaried and self-employed Indians in eight major cities – Mumbai, New Delhi, Bangalore, Hyderabad, Pune, Chennai, Jaipur and Kolkata. Out of the total number of loan applications received from these geographies, the maximum loan applications were from New Delhi (22%), followed by Mumbai (20%), Bengaluru (17%), Hyderabad (15%), Pune (13%), Chennai (8%) and Jaipur (5%).

The report also highlights that 27% of all travel loan applications came from women, compared to 14% in other categories.

IndiaLends also saw six-fold growth in travel credit cards. 75% of travel credit cards issued through the platform in 2022 came with free access to airport lounges, and more than 30% with travel-specific offers. IndiaLends also reported travel deals as the second most searched category after electronics on its recently launched branded deals feature available on the Android app.

Gaurav Chopra, Founder and CEO, IndiaLends said, “We have seen a significant increase in travel loans and credit cards in recent months, surpassing even the pre-pandemic level. With the holiday season approaching, we expect this trend to continue. As life returns to normal, we have seen a change in the spending habits of young people. Our members believe that travel is essential rather than ambitious. However, the average amount of travel loans has decreased, indicating smart financial planning by young people. »

“Travel has a purpose for our customers, and an increasing number of people are looking for travel for new experiences as opposed to R&R,” said Ankit Khurana, Head of Brand and Marketing, IndiaLends. “Travel is now seen as a means of personal growth, with a positive lifelong impact,” he added.

Employees have overtaken the self-employed in the travel loan segment, with more than 72% using them. The trend continues even in the travel credit card segment, with employee applicants holding a 69% share.

IndiaLends is currently working with over 60 RBI-approved partners, which include major PSUs and private sector banks, NBFCs, fintechs and P2P lenders. The company also offers an open API model allowing banks and NBFCs to partner with them through a plug-and-play approach. The company has more than 13 million customers, of which more than 85% are millennials and zillennials. The company broke even in March 2022.

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